Major Financial Institutions Allocate $34.86 Billion for Potential Credit Losses Amid Growing Economic Uncertainty: Report by S&P Global
Gearing Up for Financial Uncertainty: The Big Four US Banks Prepare for Tough Times Ahead
In the rapidly evolving world of finance, the four colossal US banks - JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup - are preparing for possible financial setbacks due to escalating economic uncertainties.
According to recent figures from S&P Global, these banks are collectively holding a hefty sum of $34.87 billion as credit loss provisions for the 2025 fiscal year. This strategic move is designed to combat the rising macroeconomic instability.
JPMorgan Chase: In the opening quarter of 2025, JPMorgan Chase took a higher-than-expected step by setting aside $3.31 billion in credit loss provisions. This surpassed the consensus estimate by $556 million. For the whole fiscal year, JPMorgan Chase is leading the way with an estimated $12.87 billion allocated for credit losses, as per S&P Global.
Citigroup: Coming in a close second is Citigroup, with an anticipated $10.69 billion in provisions for credit losses for the entire year.
Bank of America and Wells Fargo are expected to set aside $6.37 billion and $4.93 billion, respectively, for their credit loss provisions in 2025.
While JPMorgan Chase has taken the heaviest blow in terms of credit provisions, other lenders have allocated smaller amounts that are lower than anticipated, despite the clouds of uncertainty. Although these banks seem confident in their borrowers' ability to settle their debts, analyst R. Scott Siefers cautions there's still a question mark on the broader direction of things, expressing reservations about whether banks' reduced revenue forecasts will be enough to weather the storm.
Stay Connected: Follow us on X, Facebook, and Telegram to stay updated on the latest finance and crypto news. Don't miss a beat - subscribe to get email alerts straight to your inbox. Check out our Price Action and the Daily Hodl Mix for more insights.
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses you incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, nor are we an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Latest Industry Announcements
- The World's First International Crypto Trading Cup Kicks Off Live (May 9, 2025)
- New Purpose-Built Blockchain T-Rex Raises $17 Million to Transform Attention Layer in Web 3.0 (May 8, 2025)
- Flipster Makes Esports Debut as the Official Crypto Exchange Partner of TALON's Dota Two Team, Revolutionizing Fan Engagement (May 7, 2025)
- Bybit Bounces Back - Kaiko Validates Fast Liquidity Recovery Post $1.5 Billion Hack (May 7, 2025)
- ProMeet Unveils the Promeeters Program to Boost Influencer Impact and Long-Term Earnings (May 6, 2025)
- DogeOS Raises $6.9 Million in Funding Round Led by Polychain Capital to Launch the Dogecoin App Layer (May 6, 2025)
- Casper 2.0 Goes Live on Mainnet, Paving the Way for the Real-World Asset Era (May 6, 2025)
Spotlight
- Analytics Firm Issues Bitcoin Alert, Says BTC Approaching Area of Heavy Sell-Side Pressure - Here Are the Targets (May 3, 2025)
- 'Good Things Are Ahead': InvestAnswers Says Bitcoin Bull Run Not Over, Unveils BTC Targets Over Coming Weeks (May 3, 2025)
- 30,000 Bank Passwords From One Country Leaked Onto Dark Web Amid Global Malware Onslaught: Report (May 3, 2025)
- Trader Says Bitcoin Looking 'Really Good,' Predicts More Upside Amid Two Bullish Signals - But There's a Catch (May 3, 2025)
Focusing on finance, including macro, bitcoin, ethereum, crypto, and web 3.
Categories
Bitcoin • Ethereum • Trading • Altcoins • Futuremash • Financeflux • Blockchain • Regulators • Scams • HodlX • Press Releases
ABOUT US • EDITORIAL POLICY • PRIVACY POLICY • TERMS AND CONDITIONS | CONTACT | ADVERTISE
JOIN US ON TELEGRAM • JOIN US ON X • JOIN US ON FACEBOOK
COPYRIGHT © 2017-2025 The Daily Hodl
- Some investors might find solace in alternative avenues, such as cryptocurrencies, as traditional finance faces uncertainty.
- In the realm of altcoins, Ethereum has shown a remarkable strength, potentially attracting those seeking a strong and robust investment.
- For personal-finance enthusiasts interested in crypto trading, keeping an eye on business trends and assets like cryptocurrencies and blockchain could yield fruitful opportunities.
- As experts predict a continued bull run, Bitcoin investors may want to hold onto their assets, following the "hodl" philosophy, rather than selling at this critical juncture.
- In the fast-paced crypto world, staying informed about industry announcements, like the International Crypto Trading Cup or the launch of new blockchain projects, can provide strategic advantages.
- Amidst financial upheavals, understanding the trends in macroeconomics, Bitcoin, Ethereum, and other cryptocurrencies could help ensure that one's personal and business finances remain strong.